The South African National Energy Development Institute (SANEDI) undertook a strategic Section 12L Tax Incentive site visit to Isanti Glass 1 Proprietary Limited on Monday 09 March, to reaffirming the critical role that energy efficiency plays in driving South Africa’s industrial competitiveness, sustainability, and economic transformation.

The visit formed part of SANEDI’s ongoing work in administering and verifying the Section 12L Energy Efficiency Tax Incentive, a national mechanism designed to encourage businesses to reduce energy consumption while lowering greenhouse gas emissions. SANEDI’s Executive Committee, members of the Board, and staff toured the Isanti Glass manufacturing facility to witness firsthand the impact of the company’s energy efficiency initiatives under Project Sierra, which focuses on upgrading Furnace 1 and its associated production infrastructure.

Established in 2019, Isanti Glass, a Proudly South African entity and a majority black-owned manufacturer, has solidified its position in South Africa’s industrial sector by securing a vital, localized supply chain. The company, certified as a Top Employer 2025, emphasizes a people-centric approach to operational excellence alongside a commitment to community empowerment through its Care Volunteers program.

Operating three furnaces and nine forming lines, Isanti Glass manufactures a wide range of glass containers for the beverage, food, and pharmaceutical industries. These include beer bottles, wine and spirits packaging, soft drink bottles, and specialised food jars in Amber, Flint (clear), and Emerald Green glass. The company holds a significant share of the local container glass market and supplies major producers across South Africa’s beverage and food sectors.

During the visit, SANEDI leadership observed the technological improvements implemented through Project Sierra, which include an expanded furnace capacity, replacement of refractories, the installation of Advanced Regenerator Design systems, upgraded electrical distribution through thyristor technology, and electrostatic precipitator candle filters. Additional infrastructure upgrades include cullet silos, cold-end lines, compressor facilities, and enhanced sub-station equipment.

These improvements have delivered significant environmental and energy performance gains. Over a 12-month monitoring period from 1 July 2023 to 30 June 2024, the project achieved energy savings of 49,052 MWh, translating into a reduction of 49,052 tonnes of greenhouse gas emissions, based on South Africa’s grid emission factors.

The project also demonstrates strong alignment with global sustainability practices. Isanti Glass incorporates an average of 50% recycled glass (cullet) into its production process and actively supports South Africa’s circular economy through its “It’s In Our Hands” campaign, which contributes to more than 50,000 income-generating opportunities for informal waste collectors and recycling buy-back centres.

SANEDI plays a critical role in ensuring that projects claiming the Section 12L incentive meet rigorous measurement and verification standards. The Institute maintains a target turnaround time of ten working days for baseline and performance assessment approvals. While the baseline review process for this project experienced a delay due to the response time of external review panellists, SANEDI has since strengthened its review capacity by increasing the number of expert panellists to improve efficiency in future approvals.

The timeline for the Isanti Glass assessment process included:
• Baseline Submission: 20 March 2025
• Baseline Review: 16 April 2025
• Baseline Approval: 23 April 2025
• Performance Assessment Submission: 23 June 2025

Speaking during the visit, SANEDI leadership emphasised that partnerships between government, industry, and innovation institutions are essential for achieving South Africa’s energy transition while supporting industrial growth.

The visit highlighted how forward-thinking manufacturers like Isanti Glass are demonstrating that energy efficiency is not only an environmental imperative but also a strategic driver of productivity, cost savings, and sustainable development.

“ As South Africa continues to pursue a resilient and low-carbon energy future, initiatives such as the Section 12L Tax Incentive remain a powerful catalyst, that enables businesses to offset the costs of modernisation while significantly reducing the load on our national grid,   , reduce emissions, providing the financial impetus for companies and strengthen the country’s energy security. SANEDI will continue working with industry partners to accelerate the adoption of energy efficiency technologies and  build a more sustainable and competitive economy for generations to come.”  Ms Faith Mkhacwa General manager at SANEDI.